Forex trend.

This term is often identified with the concept of trend; in some ways they are similar, but in others there are differences.

Forex trend - in most cases, characterizes the general mood that has developed in the foreign exchange market and takes into account a fairly long time period.

It is advisable to take this factor into account when opening medium-term and short-term transactions; this approach will help to avoid mistakes in choosing the direction of transactions, and therefore reduce the number of unprofitable orders.

There are several options for dividing trends in Forex:

By duration:

• Medium-term - from one week to a month, implies that during this period one direction of price movement was predominantly maintained.

• Long-term - from a month or more, usually formed after the price has dropped or risen to the boundary level and made a reversal. For example, the situation with the EURUSD currency pair , which sometimes reaches the 1.4000 mark, and then begins to decline for a long time.

In the direction:

• Ascending - constant price growth, if you compare the starting and ending points of the time period, the final price will be higher than the starting one.

• Descending - a gradual decrease in the exchange rate of a currency pair over a certain period of time.

Unlike a trend, a tendency cannot have a horizontal direction; a flat state can only be characterized as a short-term phenomenon.

Trend and real trading.

A trend is a rather changeable phenomenon, but if you analyze the chart of a currency pair for a week, you can easily determine the current trend, so this should be taken into account when opening a transaction; this rule is not always suitable for short-term transactions lasting less than a few days.